1. Sean-Y-Tran-Brianda-Baseet-Hyebin-Ngoc Group 5

2. ICGALAXY  In the last decade cell phone companies have developed newer technologies as well as improved their devices, they’ve certainly come a long way, but they are still lacking.  Our approach to improving smartphones is simple, fixing We present to you: ICGALAXY

3. Background  Nowadays there are close to 1.7 billion people worldwide who own smartphones.  In 2012 the total addressable market for smartphones was approximately 225 million.  Today, there are about 165 million Android and Apple iOS users in the US alone.  If the total addressable market is 225 and there are only 165 current users, there is a potential market of about 60 million users, which makes the cellphone industry one of the most competitive one.

4. Market Research Primary Research(online survey)  18-25 year olds, both male & female  College students  Dallas Metroplex Key Issues  Determining factors when choosing which cellphone to buy.  Current cellphone brand  Issues with current cellphone

5. Brand of current cellphone

6. Factors to improve about current phone

7. Determining factors in buying a phone

8. Would buy an ICGALAXY

9. Market Research Secondary Research (2013 data)  Apple: 30,330 million 1  Samsung: 80,356.8 million 1  HTC: $70.7 billion globally 2 1. Bora, Kukil. “Worldwide Smartphone Sales In Q3 2013: Samsung, Android Maintain Lead As Apple’s Market Share Slips”. International Business Times. http://www.ibtimes.com/worldwide-smartphone-sales-q3-2013-samsung-android-maintain- lead-apples-market-share-slips-1471754 (April 7, 2014) 2. Henderson, Rick. “HTC profits rise fractionally in Q2 2013 thanks to HTC One sales, but predicts losses for Q3”. Pocket-lint. http://www.pocket-lint.com/news/122637-htc-profits-rise- fractionally-in-q2-2013-thanks-to-htc-one-sales-but-predicts-losses-for-q3 (April 7, 2014)

10. Competitive Advantage Product Development  Introduce an improved product to an existing market  Inform customers of product’s better performance and unique features Product Differentiation  Competitive advantage in being a customizable phone for industry-wide consumers  Higher quality material and functionality  Higher product resale and scrap value

11. SWOT 1. "Mobile Technology Fact Sheet." Pew Internet Project. http://www.pewinternet.org/fact-sheets/mobile-technology-fact-sheet/ (accessed April 9, 2014). 2. "SWOT analysis of Apple." Strategic Management Insight. http://www.strategicmanagementinsight.com/swot-analyses/apple-swot- analysis.html (accessed April 9, 2014). StrengthsWeaknessesOpportunitiesThreats ● Extended battery life ● Fast Internet and app speeds ● Strong signal strength ● Higher quality materials ● Late market entry ● No current established brand positioning ● Rapidly growing industry with 90% of cell phone users ● 77% of cell internet users experience slow download speeds ● 72% of cell owners experience dropped calls at least occasionally ● Saturated smartphone markets in developed countries ● Apple’s customer loyalty combined with expanding closed ecosystem ● Rapid technological change demands new innovative products

12. SWOT Analysis Opportunities 1.Improve smartphones with longer battery life,faster Internet speeds, and stronger signal strength 2.Offer customizable features (i.e. design, camera, battery) 3.Partner with a branded company 4.Develop a new mobile operating system 1 Attractiveness High Low Success Probability Threats 1.ICGALAXY competitors release a faster processor and more durable battery 2.Competitors lowering their selling prices 3.Competitors expanding market share to other countries 4.Competitor acquires ICGALAXY 2 1 Boxall, Andy. "War for your pocket: These 5 new operating systems plan to battle Android and iOS in 2013." Digital Trends. http://www.digitaltrends.com/mobile/five-new-mobile-operating-systems-ready-for-launch-in-2013/ 2 Walrath, Michael. “What are the pros and cons of a startup being acquired by a large company.” Quora. http://www.quora.com/What-are-the-pros-and-cons-of-a-startup-being-acquired-by-a-large-company Seriousness Probability of Occurrence High Low

13. Buyer behavior  Battery life, processing speed, and signal strength are the three main factors consumers consider when buying a phone  Users who mentioned functionality and price as key factors in purchasing a new phone were more willing to pay depending on the price  Users who purchase their phones from retail stores are more certain to buy the ICGALAXY than those of official and online stores  Official store customers are the most willing to consider purchasing the product depending on the price  Samsung users are primarily concerned about functionality and pricing  Apple and Other users are primarily concerned about functionality and operating system

14. Segmentation & Targeting Mobile users nationwide ages 18-49 who:  Earn an income of >$49k  Have owned smartphones before  Primarily experience issues with battery life, and signal strength  Purchase phones at official and retail stores  Who want customizable features

15. Promotion Overview  Google Adwords  Facebook  Become partners with Verizon  Commercials  Print Ads  Personnel Advertising

16. Google Awords  CPC and CPM  Cost: $2,500 for the first 100 days  400 clicks  8,200 impressions  Key Words: iCGalaxy, new phones, affordable smart phone

17. Commercials In- Stream Ads (YouTube) Cost: $2,100 (7000 views) intermittent style for 3 weeks prior to release of product Heavily shown during week of release and then intermittent style for the next 3 months Local TV Stations Cost: $2,600 (12 ads) Aired during the week before and we of product release

18. Facebook  Used as a Promotional Tool  Invite 50 of your friends to “like” our page and you’ll receive a 5% discount on the purchase of an iCGalaxy. Offer ends 04/22/14. Hurry!  The top ten people to invite the most friends to “like” our page will win a FREE iCGalaxy!  Cost: FREE

19. Partner up with Verizon Low switching costKeep your existing numberBuy 2 phones and get the third FREEReceive 10% off with a 2-year contractCost: Verzion keeps 2% of sales profit

20. Magazine Ads  Cost: $1965 (3 ads)  printed in TIME, Forbes, Seventeen in the first week of product release  Example:

21. Personnel Advertising Booths  Have company salespersons go into wholesalers like Costco and Sam’s to set up a booth. They will have sample phones to advertise and can also collect emails of potential customers.  Cost: Free (pending store managers permission)  When: for one month after product release Help to create buzz Collect emails of interested people Help to create more market research Reach target audience

22. Success Metrics